Team News Riveting
New Delhi, August 17
NTPC Limited and NTPC Mining Limited on Thursday executed the Business Transfer Agreement (BTA) to hive off coal mining business.
The state-owned power producer NTPC Ltd has received board approval on July 29, 2023 to hive off its coal mining operations into a wholly-owned subsidiary NTPC Mining Ltd. The coal mining business comprises 6 coal mines and all related assets and liabilities are being hived-off from NTPC’s books to NTPC Mining Ltd.
NTPC Mining is a 100 per cent subsidiary of NTPC Ltd. It was incorporated by the company in 2019, for undertaking the mining business. The power major will receive Rs 7,795 crore from the transfer of the coal mining business. This is based on the book value, payable through a combination of cash/equity shares/debt liability, the company said in an exchange filing.
“This is in continuation to our disclosure dated 29 July 2023 regarding the approval of the Board of Directors of NTPC Limited for hiving-off its coal mining business, consisting of 6 coal mines to its wholly owned subsidiary NTPC Mining Limited through a Business Transfer Agreement {BTA),” the company said in a regulatory filing. “In this regard, this is to inform you further that NTPC Limited and NTPC Mining Limited have executed the BTA on 17 August 2023, in New Delhi. The BTA shall become effective upon completion of the conditions precedent mentioned in the BTA,” it added.
It expects to complete the transfer of the business in 6 months from the date of the execution of the agreement, subject to receiving all the statutory approvals for the same.
